Lululemon has warned of a weaker-than-expected 2026, with full-year revenue projected at $11.35 billion to $11.50 billion and earnings per share of $12.10 to $12.30, both below analyst forecasts. Tariffs are expected to cost $380 million gross in 2026, alongside higher marketing and labor spending. Americas sales are projected to fall 1% to 3%, while China is forecast to grow around 20%. A proxy battle with founder Chip Wilson adds further governance pressure; the company has appointed former Levi Strauss CEO Chip Bergh to its board.

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